Category: Jurisdiction

Latvia / Legislation / OECD

OECD Secretary-General Angel Gurría Congratulates Latvia on Adopting the “Public Persons Enterprises and Capital Shares Governance Law”

Posted On: October 20, 2014

On 16 October, the Saeima (Parliament), in its final reading, passed the “Public Persons Enterprises and Capital Shares Governance Law”  in order to promote more effective governance of companies owned by the state and local governments. The Secretary-General of the Organisation for Economic Cooperation and Development (OECD), Angel Gurría, has… – Continue reading

Austria / Automatic Exchange of Information / Banking Secrecy / EU / Gaar / Legislation / Luxembourg / Offshore Banking / Singapore / Switzerland / Tax evasion investigations / United Arab Emirates / USA

After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

Posted On: October 20, 2014

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money.  The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift… – Continue reading

Anti money laundering / Base Erosion & Profit Shifting / Beneficial Ownership / Dividends / Double Tax Treaty / Legislation / Luxembourg / OECD / Royalties

Luxembourg: Update Of The OECD Model Tax Convention

Posted On: October 20, 2014

On July 15th 2014, the OECD published its 2014 update of the Model Tax Convention (“2014 OECD Update”). This update is the outcome of the work accomplished between 2010 and the end of 2013. It does not however take into account the OECD conclusions of the “Action Plan on Base… – Continue reading

Base Erosion & Profit Shifting / Corruption / G20 / Legislation / Mauritius / South Africa / Tax evasion investigations / Tax Planning / Tax treaties / Transfer pricing

Davis Tax Committee mulls ways to ‘detect and deter’ corporate tax avoidance

Posted On: October 20, 2014

The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and deter” tax-avoiding financial flows. Speaking at a G20 study… – Continue reading

Bermuda / Lonmin Plc / Mauritius / Offshore Companies / South Africa / Tax evasion investigations / Transfer pricing / United Kingdom

Switzerland Extends Olive Branch To India On Tax

Posted On: October 20, 2014

Swiss authorities have confirmed that, if asked, they will assist India in efforts to confirm the genuineness of bank documents and will swiftly provide information on requests relating to non-banking dossiers. The commitment was made in a joint statement following a meeting between the Swiss State Secretary, Jacques de Watteville,… – Continue reading

Argentina / Automatic Exchange of Information / Double Tax Treaty / Switzerland

Switzerland and Argentina closer to deal on double taxation and sharing tax information

Posted On: October 20, 2014

Switzerland took a step forward on implementing its double taxation agreement (DTA) with Argentina as the Federal Council adopted the dispatch on the deal and submitted it to parliament for approval. Meanwhile, in Argentina the agreement has already been passed by the Foreign Affairs and Budget Committees of the Lower… – Continue reading

Advance Pricing Agreement / Base Erosion & Profit Shifting / EU / IGA / Ireland / Luxembourg / OECD / State Aid / Tax competition / United Kingdom

The changing business model

Posted On: October 20, 2014

There has been a lot of press coverage recently around the pricing and tax arrangements of multinationals, in particular Apple, Starbucks and Amazon. In this respect, the EU is undertaking in-depth investigates into these companies to establish whether the companies’ tax arrangements have breached EU State Aid rules. These cases… – Continue reading

Legislation / Offshore Companies / Offshore Trusts / Real Estate / Tax Planning / USA

United States: Tax Aspects Of Foreign Ownership Of US Residential Real Estate

Posted On: October 20, 2014

Representation of foreign individuals who wish to purchase US residential property should include careful attention to the manner in which the income and gain from the property will be taxed in addition to the other aspects of ownership. In addition, it is important to be aware of the manner in… – Continue reading

Cayman Islands / China / Loans / Offshore Banking / Russia / Ukraine / USA

Foreign lending picks up in second quarter, offshore centers attract credit

Posted On: October 20, 2014

(Reuters) – International banking activity expanded for a second straight quarter between April and June with banks lending more to emerging markets, particularly China, and to investment funds in offshore centers such as the Cayman Islands, data showed on Monday. Foreign lending to offshore centers rose to $2.269 trillion in… – Continue reading

FATCA / IGA / Legislation / Offshore Banking / Offshore Investments / USA

FATCA Alert

Posted On: October 20, 2014

In recent years, the United States has increased initiatives to counter tax evasion committed by U.S. persons who are not reporting and paying U.S. income tax on earnings derived from foreign financial assets. The Foreign Account Tax Compliance Act (“FATCA”) represents the latest major initiative in this regard, having been… – Continue reading

Tax competition / USA

The optimum income taxation

Posted On: October 20, 2014

Obama finds foreign a tax rate that is both fair and efficient What is the maximum income-tax rate that anyone should be expected to pay? Some questions are never settled, in part because people often ignore the theoretical and empirical evidence, and history that can help answer the question. The… – Continue reading

Austria / British Virgin Islands / Bulgaria / Canada / Cayman Islands / FATCA / Germany / Guernsey / IGA / India / Japan / Luxembourg / Offshore Investments / Switzerland / United Kingdom / USA

FATCA Tracker – October 01, 2014

Posted On: October 19, 2014

Nearly 105,000 financial institutions are listed on the US Internal Revenue Service (IRS) database of Foreign Account Tax Compliance Act (FATCA) organisations complying with the tax reporting rules for US citizens. The latest list was published on October 1, 2014 by the IRS and shows 104,344 financial organisations have signed… – Continue reading

Africa / Brazil / Chile / Corruption / El Salvador / Guatemala / Mexico / Nicaragua / OECD / Paraguay / Tax evasion investigations / Uruguay / Venezuela

LatAm: corruption, tax evasion fuel inequality

Posted On: October 19, 2014

These crimes hinder the development of societies, prevent strengthening the legitimacy of democracy SANTIAGO — Corruption and tax evasion are flagrant violations of human rights in Latin America, where they contribute to inequality and injustice in the countries of the region, according to studies and experts consulted by IPS. “Tax… – Continue reading

Double Taxation / India / Offshore Banking / Offshore Investments / Switzerland / Tax evasion investigations

Black money row: Left says BJP and Centre stand exposed

Posted On: October 18, 2014

New Delhi: Communist Party of India (Marxist) leader Brinda Karat on Saturday criticized the Prime Minister Narendra Modi-led NDA Government at the Centre for not disclosing the names of persons having money stashed away in safe havens abroad, and alleged that it exposed the utter hypocrisy and double standards of… – Continue reading

Automatic Exchange of Information / HSBC / India / Offshore Banking / Switzerland / Tax evasion investigations

Major Government Initiative to Combat Unaccounted Money and Tax Evasion

Posted On: October 18, 2014

New Delhi: A delegation led by Shri Shaktikanta Das, Revenue Secretary and consisting of Shri K.V. Chowdary, Chairman, CBDT and ShriAkhileshRanjan, Joint Secretary (FT&TR) visited Switzerland on 15.10.2014 and held discussions with Swiss Finance and Tax Authorities on issues relating to Exchange of Information in tax matters. The Swiss delegation… – Continue reading

Colombia / Legislation / Panama / Tax Information Exchange Agreements

Panama, Colombia to hold uninterrupted talks to resolve tax-haven spat

Posted On: October 18, 2014

PANAMA CITY –  Panama and Colombia said they will talk uninterruptedly to resolve a dispute that erupted after Bogota included the Central American nation on its list of tax havens. Panama’s vice president and foreign minister, Isabel De Saint Malo de Alvarado, and Colombia’s foreign minister, María Angela Holguín, delivered… – Continue reading

Anti money laundering / Bahamas / Banking Secrecy / Belize / Corporates / Corruption / EU / Latvia / Loans / Moldova / Offshore Banking / Offshore Companies / Offshore Investments / Panama / Round Tripping / Russia / Seychelles / Syria / Tax evasion investigations / Tax Planning / United Kingdom

Dirty money: 19 UK firms alleged ‘complicit’ in $20bn laundering scam

Posted On: October 17, 2014

Some 19 British firms are at the center of an investigation into in a mammoth global money-laundering operation. The scheme was allegedly contrived to make $20bn (£12.5bn) worth of ill-gotten gains appear legitimate. The illicit funds are thought to have originated from criminal gangs and corrupt officials across the globe,… – Continue reading

Double Tax Treaty / EU / Ireland / Offshore Investments

IMDO Launch Report on Irish Tonnage Tax Opportunities for International Shipping Industry

Posted On: October 17, 2014

IrishTonnageTax – The Irish Maritime Development Office (IMDO) has released a report Irish Tonnage Tax: Opportunities for the International Shipping Industry. The Irish tonnage tax regime has been established for over 10 years and offers one of the most competitive on-shore corporate tax rates to international shipping companies. The tonnage… – Continue reading

Amazon / Apple / Bermuda / EU / France / Google / Intellectual Property / Ireland / Luxembourg / Netherlands / Royalties / Starbucks / State Aid / Tax Planning / United Kingdom / USA / Withholding tax rules

Apple and other tech giants now have to pay their fair share

Posted On: October 17, 2014

Ireland puts an end to a tax loophole that saved Google, Apple, Microsoft, and Facebook billions in taxes “Double Irish” might sound like a drink that corporate tax lawyers reach for at the prospect of paying higher tax bills, but it’s actually the name of a controversial — albeit legal… – Continue reading

Base Erosion & Profit Shifting / Double Tax Treaty / Intellectual Property / Ireland / Legislation / Loans / OECD / Offshore Companies / Offshore Investments / Permanent establishment / Real Estate / Residence / Tax Planning / Transfer pricing

Irish Budget 2015 – Rate, Regime, Reputation

Posted On: October 17, 2014

Our Reaction The Irish Minister for Finance delivered his Budget 2015 (the “Budget”) speech this week. There was considerable domestic and international anticipation in advance of the Budget against a backdrop of significant recovery in the Irish economy and also international focus (including, in particular, under the OECD BEPS project)… – Continue reading

FATCA / Legislation / Offshore Investments / Offshore Trusts / United Kingdom / USA

Confusion over Fatca deadline for trusts

Posted On: October 17, 2014

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Emailftsales.support@ft.com to buy additional rights. Trustees of private family trusts are being urged to register with the US tax… – Continue reading

Australia / Offshore Banking / Offshore Investments / Tax disclosure amnesty / Tax evasion investigations

Australia: Project Do It: Disclose unpaid tax from offshore income now

Posted On: October 17, 2014

“It is the world’s best tax amnesty, “ says Morris Maroon, Head of the National Tax Team of law firm Rockwell Olivier. “There are only months before the best opportunity to turn foreign wealth tax-clean will come to an end. We will then see if the predictions of a particularly… – Continue reading

Beneficial Ownership / Bermuda / Legislation / Offshore Investments / Offshore Morality / Offshore Trusts / Residence

Bermuda: Super-Powered Settlors

Posted On: October 16, 2014

The reservation or grant of certain powers by settlors has always been possible under Bermuda’s trust law but, historically, there was some uncertainty about exactly how far settlors could go without calling the validity of the trust structure into question. The recently passed Trusts (Special Provisions) Amendment Act 2014 (TAA… – Continue reading

Cayman Islands / Inversion / Ireland / Offshore Companies / Offshore Investments / Offshore Partnerships / Tax Planning / USA

Franken’s Attacks on ‘Fat Cat’ Financiers Backfire

Posted On: October 16, 2014

Minnesota Democrat invested in opponent’s tax-inverting company as son’s private equity firm opens shop in Caymans Sen. Al Franken (D., Minn.) is hoping to saddle his Republican challenger with Mitt Romney-esque charges of “vulture corporatism,” but his own investment activities, and those of his son, could blunt those attacks with… – Continue reading

Court cases / India / Legislation / Transfer pricing / Vodafone

Bombay High Court ruling on taxability of share premium in the Vodafone India case

Posted On: October 16, 2014

The much-awaited decision of the Bombay High Court was pronounced on October 10. Transfer pricing adjustment carried out in Shell/Vodafone case has been at the centrestage of every public discussion on Indian transfer pricing legislation. The incredulous stand taken by the tax authorities has evoked a strong response from investors… – Continue reading

China / Loans / Offshore Banking / Offshore Investments / Taiwan

Taiwan FSC to do stress tests on Chinese banks every quarter

Posted On: October 16, 2014

Tseng Ming-chung at a press event in Taipei, Oct. 7. (Photo/Yen Chien-lung) Taiwan’s Financial Supervisory Committee (FSC) plans to conduct stress tests to assess the credit risks of China’s banks every quarter, reports our Chinese-language sister paper China Times. FSC chairman Tseng Ming-chung said the quarterly report will be published… – Continue reading

EU / Financial markets / Offshore Banking / Offshore Investments / Offshore Partnerships / Spain / Tax evasion investigations / Telefonica SA (TEF) / USA

Spain’s Tax Breaks, TD Bank, Ex-UBS Banker: Compliance

Posted On: October 16, 2014

The European Union expanded its crackdown on illegal tax breaks, ordering Spain to recover money from companies that benefited from rules encouraging merger activity outside of the country. The European Commission said the Spanish measures unfairly rewarded companies for buying stakes in foreign competitors. Telefonica SA (TEF) last year lost… – Continue reading

OECD / Romania

PM: Romania wants to become full-fledged OECD member

Posted On: October 16, 2014

Romania wants to become a full-fledged member of the Organization for Economic Co-operation and Development (OECD), according to Romanian officials, Prime Minister Victor Ponta and Foreign Affairs Minister Titus Corlățean. The message has been sent to – and received by –the OECD secretary general William Danvers, who was on a… – Continue reading

Base Erosion & Profit Shifting / Intellectual Property / Ireland / Legislation / Offshore Companies / USA

Ministers reassuring key foreign firms on closure of ‘Double Irish’

Posted On: October 16, 2014

Budget measures including new foreign direct investment incentives discussed State agencies and Government Ministers and officials have launched a co-ordinated campaign of letters and phone calls to senior executives of foreign multinationals, to reassure them that Ireland remains a top destination for investment following the budget, Minister for Enterprise Richard… – Continue reading

Africa / Ghana / Legislation / Nigeria / OECD / Transfer pricing / Uganda / Zambia

Nigeria: Transfer Pricing Africa (Part II)

Posted On: October 16, 2014

n this second part of our overview of current transfer pricing regulations on the African continent, we focus on relevant provisions in, amongst others, Ghana, Nigeria and Uganda. The Ghanaian Transfer Pricing Regulations, 2012 (L.I.2188) (the Ghanaian Regulations) were introduced by the Ghana Revenue Authority (GRA) on 27 July 2012,… – Continue reading

Apple / Google / Ireland / Legislation / Residence / Tax competition / USA

Why Apple And Google Won’t Care About Irish Tax Law Changes

Posted On: October 16, 2014

Ireland has this week moved to change its tax law, closing the “double Irish” tax avoidance technique widely used by multinational enterprises including Google and Microsoft. Picture: Getty Images In very broad terms, the current Irish tax law allows a company incorporated in Ireland to be a tax resident of… – Continue reading

Capitex / Controlled Foreign Companies / Game Group / Loans / Luxembourg / Offshore Companies / Offshore Investments / Tax evasion investigations / Tax Planning Failures / United Kingdom

Private equity owners of Game Group used tax havens for payments

Posted On: October 16, 2014

The private equity owners of video games retailer Game used tax havens in the two years they owned it, accounts have revealed. US buyout group Elliott Advisors snapped up Game Group after it collapsed into administration in 2012. It set up Game Digital in April 2012 in a deal masterminded… – Continue reading

Amazon / Apple / Denmark / EU / Fiat / Gibraltar / Ireland / Luxembourg / Netherlands / Starbucks / State Aid / Tax competition / Tax evasion investigations

Commission’s Tax Drive Unsettles Multinationals

Posted On: October 16, 2014

Europe’s antitrust regulator is encroaching on what has been the preserve of national governments. There’s a new tax sheriff in town. Europe’s top antitrust regulator, the Brussels-based European Commission, has launched an unexpected assault on what it suspects are sweetheart tax deals for multinational companies, plowing into an area traditionally… – Continue reading

Africa / Bermuda / Lonmin Management Services (Pty) Ltd / Offshore Companies / Tax evasion investigations / Transfer pricing

Profit shifting report false – Lonmin

Posted On: October 16, 2014

A report claiming Lonmin is engaging in two transfer pricing arrangements is misleading and false, the company said on Thursday. It was responding to a report titled “The Bermuda connection: Profit shifting and unaffordability at Lonmin 1999-2012″, released by the Alternative Information and Development Centre (AIDC) on Thursday morning. “Lonmin… – Continue reading

Legislation / Offshore Banking / Offshore Companies / Offshore Investments / USA

IRS Modifies Offshore Filing Procedures

Posted On: October 16, 2014

The IRS has issued FAQs relating to the new streamlined procedures for offshore compliance, and for Delinquent International Information Return Submission Procedures. The FAQs for the streamlined program provide more detailed guidance on how the 5% penalty will be computed, how 100% owners of an incorporated business will be treated,… – Continue reading

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